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#281 Spree

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Posted 24 November 2017 - 12:09 AM

If valued only on the fundamentals, it seems extremely cheap, on a PE of 10x (historic), and a forward PE of about 8x( expected heps). Moreover, they hold the dominant share of the local IT market, yet their market share is well below 10%, meaning there is great scope for consolidation (which is fantastic for an acquisitive company).

However, the collapsing share price is a huge impediment to their acquisition and consolidation strategy!

The major concern is that this share keeps tumbling, even in the absence of any publicly available news, indicating that some people maybe aware of some real trouble brewing!

I think that management should publicly and convincingly address all concerns, reassure investors, and work hard to restore confidence in the company. They need to also put "more skin in the game", by buying large chunks of shares, thereby showing their own confidence in the company.

If everything is fine and above board, I see no reason why the share would not be trading north of R120.00 !!
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#282 SoleTrader

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Posted 23 November 2017 - 08:05 PM

Starting to look vaguely interesting. Will take 20% of my order tomorrow.
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#283 Bullhunter

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Posted 23 November 2017 - 06:18 PM

Down 8% today. New 12 month low.

 

Large single trade at close which was also the low for the day. Looks like an institutions selling/buying and should recover.


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#284 SoleTrader

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Posted 20 November 2017 - 06:43 PM

According to Cy Jacobs on twitter apparently many resignations from the company. It took Pinnacle almost two years to recover after their crap
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#285 Spree

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Posted 17 November 2017 - 12:15 AM

Over reaction post divi?


Quite possible. However, this share went ex-divi over 2 weeks ago! This steady decline in price is mystifying. You have to wonder what is REALLY driving the price lower, in the absence of any negative news(in the public domain)?

The only news that I have come across of late is usually good (as in your link to the De Beers/ EOH software story). A further example is their recent appointment as an exclusive partner for Amazon (AWS).

Things had been looking up for the company. Latest results were pretty good, management's outlook was fairly positive, the allegations of wrongdoing were retracted. This should have resulted in the share price rising, yet, the opposite has happened!

Furthermore, quite a few of the brokers/ analysts on TV had been choosing EOH as their stock pick in recent weeks.

It makes you wonder whether someone out there knows something that we do not!
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#286 Bullhunter

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Posted 16 November 2017 - 04:31 PM

Does anybody have any idea why the EOH share price has been steadily falling for the past week or so ( fallen about 15%)?

I have not come across any negative news anywhere.

Over reaction post divi?


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#287 Spree

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Posted 16 November 2017 - 02:58 PM

Does anybody have any idea why the EOH share price has been steadily falling for the past week or so ( fallen about 15%)?

I have not come across any negative news anywhere.
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#288 Bullhunter

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Posted 16 November 2017 - 11:43 AM

http://www.miningwee...-16/rep_id:3650


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#289 Spree

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Posted 31 October 2017 - 12:45 PM

LDT today. Dividend 215c (gross).
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#290 Spree

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Posted 25 October 2017 - 04:42 PM

EOH says its name has been cleared
 
https://techcentral....-cleared/77768/


Amabhungane have confirmed this. Although they have not, as yet, explicitly retracted the original artcle, they have confirmed, after 6 months of investigations and interactions with EOH, that they have "found no evidence of any wrongdoing" by EOH.

However, it seems that the market is still not convinced! After an initial spike in the share price this morning, the share has given back most of the gains.

If memory serves, the share was trading above R135.00 when the Amabhungane article was first published. The price immediately dropped to about R115.00. Some time after, Business Report rehashed the same article, which really spooked investors (again), and the share tanked to below a R100.00 !!

I think, if viewed purely on fundamentals, the price should return to where it was prior to the original article. It is trading on a foward PE of about 10; it is still showing growth, a!beit at a slower rate ; Healthy cash balance ; Increasing sales from software and IP( at higher margins on own software) ; etc...!
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#291 Bullhunter

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Posted 25 October 2017 - 12:44 PM

EOH says its name has been cleared

 

https://techcentral....-cleared/77768/


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#292 Bullhunter

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Posted 17 October 2017 - 08:17 PM

Liston Meintjies of NVest punted EOH on Business Day TV today.


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#293 Spree

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Posted 17 October 2017 - 04:29 PM

17 AUGUST 2017 
For new EOH boss Zunaid Mayet, who replaced founder Asher Bohbot in May, this year’s precipitous 34% share price plunge is due squarely to bad press.
Mayet is fuming about "defamatory" reports from investigative journalism centre amaBhungane in April that linked EOH insiders — father-and-son team Jehan and Danny Mackay — to Lunga Ncwana, a "shady" middleman in the SA Social Security Agency (Sassa) grants scandal.
"We’ve been very clear in our repudiation of the article and its insinuations," says Mayet, who joined the company in 2009 and headed its industrial technologies division.
"We’ve engaged independent lawyers to come in and do a review [of] the facts in relation to the article. These have been presented to the EOH board and we’re satisfied that there is no truth [in them]. The articles are baseless," he says.
The subscription of R120.00 per month for Business Live is well worth it.


Thanks for that, Bullhunter. Greatly appreciated.

I see that EOH is sliding again, after a decent run last week. It seems that buyers wiil steer clear until these allegations are permanently 'put to rest'!!

If it is true that 'amaBhungane' will be retracting these allegations, this share could run very hard and very fast! If not, and there is no further clarity, the share will probably trend sideways or, maybe, downwards for some time.
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#294 Bullhunter

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Posted 12 October 2017 - 05:31 PM

Thanks Bullhunter. Unfortunately, I am not a subscriber to BL premium and cannot read the article. Is there any elaboration on the corruption allegations, or any mention of a pending retraction of these allegations by Amabhungane?

17 AUGUST 2017 

For new EOH boss Zunaid Mayet, who replaced founder Asher Bohbot in May, this year’s precipitous 34% share price plunge is due squarely to bad press.

Mayet is fuming about "defamatory" reports from investigative journalism centre amaBhungane in April that linked EOH insiders — father-and-son team Jehan and Danny Mackay — to Lunga Ncwana, a "shady" middleman in the SA Social Security Agency (Sassa) grants scandal.

"We’ve been very clear in our repudiation of the article and its insinuations," says Mayet, who joined the company in 2009 and headed its industrial technologies division.

"We’ve engaged independent lawyers to come in and do a review [of] the facts in relation to the article. These have been presented to the EOH board and we’re satisfied that there is no truth [in them]. The articles are baseless," he says.

The subscription of R120.00 per month for Business Live is well worth it.


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#295 Spree

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Posted 12 October 2017 - 03:54 PM

https://www.business...ouble-with-eoh/


Thanks Bullhunter. Unfortunately, I am not a subscriber to BL premium and cannot read the article. Is there any elaboration on the corruption allegations, or any mention of a pending retraction of these allegations by Amabhungane?
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#296 Bullhunter

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Posted 12 October 2017 - 10:39 AM

The other day on the BdTv program "Stock Watch", Guliata Talevi (the host) mentioned, very briefly, that "Amabhungane" would soon be recanting the allegations that they had made against EOH. However, she did not elaborate on this and has not mentioned this again (as far as I am aware!).

I have not come across even one mention of this anywhere on the web!

If this is true, and a public retraction is made, and considering that Amabhungane seems to be the sole accusers, this should have a massively positive effect on the share price.

As far as I am aware, there is no legal investigation of these allegations by any state law enforcement agencies, nor is anything on the horizon (of course, I could be very wrong!).

If the dark cloud of corruption allegations were lifted, EOH should rerate substantially on the fundamentals ( very healthy cash balance; expected growth of +15% ; increasing sales of own software at higher margins, etc.)

Any thoughts?

https://www.business...ouble-with-eoh/


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#297 Spree

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Posted 11 October 2017 - 11:17 PM

The other day on the BdTv program "Stock Watch", Guliata Talevi (the host) mentioned, very briefly, that "Amabhungane" would soon be recanting the allegations that they had made against EOH. However, she did not elaborate on this and has not mentioned this again (as far as I am aware!).

I have not come across even one mention of this anywhere on the web!

If this is true, and a public retraction is made, and considering that Amabhungane seems to be the sole accusers, this should have a massively positive effect on the share price.

As far as I am aware, there is no legal investigation of these allegations by any state law enforcement agencies, nor is anything on the horizon (of course, I could be very wrong!).

If the dark cloud of corruption allegations were lifted, EOH should rerate substantially on the fundamentals ( very healthy cash balance; expected growth of +15% ; increasing sales of own software at higher margins, etc.)

Any thoughts?
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#298 Bullhunter

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Posted 10 October 2017 - 04:53 PM

Analysts from Avior have a 12-month target price of R192 on the stock (more than double its current level), while Prescient reckons it could trade to R162.

 

Mayet and his financial director, John King, seem to share that view, as they’ve been snapping up shares on the open market. While Mayet acknowledges that the prognosis for the SA economy is "lukewarm", he insists the IT sector’s growth prospects are far better.


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#299 Bullhunter

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Posted 10 October 2017 - 04:25 PM

Now that we've seen the FY numbers, have any of you been persuaded to buy some EOH?

On the surface, the numbers seem pretty decent in the current environment, and management seem confident of, at least, maintaining this level of growth. The PEG is well below 1 (around 0.80), if this growth can be maintained ( big if!).

Or, are the corruption allegations, which have not disappeared (and may never!), posing too big a risk??

Any thoughts are appreciated.

FNB Securities analyst Chantal Marx says: "In SA the IT sector is very interesting because it’s super-fragmented. EOH is the largest market-share holder, but only has 2% market share, so that gives you an idea of what opportunities are still out there."

 

The company is "printing" money, says Marx. Cash generated by operations surged to R1.4bn in the year, from R917m the year before.

 

Marx believes EOH will be able to boost margins as it beds down recent acquisitions. She describes the company’s p:e rating as "crazy" given its expectation that it will grow by 15%-20% over the next five years.

 

https://www.business...-its-mojo-back/


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#300 Spree

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Posted 21 September 2017 - 04:24 PM

Now that we've seen the FY numbers, have any of you been persuaded to buy some EOH?

On the surface, the numbers seem pretty decent in the current environment, and management seem confident of, at least, maintaining this level of growth. The PEG is well below 1 (around 0.80), if this growth can be maintained ( big if!).

Or, are the corruption allegations, which have not disappeared (and may never!), posing too big a risk??

Any thoughts are appreciated.
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